This news is now proving that there is no over supply of lithium (at least in high quality segment of the supply chain) and China needs a lot more lithium than many think.
It also makes all those oversupply narratives idiotic.
"LTR and Beijing Sinomine International Trade Co., Ltd. have executed a definitive binding full-form offtake agreement for the supply of up to 100,000 dry metric tonnes over a 10-month period to commence by 30 September 2024".
We know that Sinomine Resource Group (I believe Beijing Sinomine is subsidy of this group) bought Bikita Minerals, one of Africa's oldest lithium mines, for $180 million in January 2022 and began building a 300kt spodumene concentrate plant while expanding the existing petalite plant at that time. This plant must be producing now. And Zimbabwean mines and Chinese lepidolite mines have always been the reason for the guys who pushed the oversupply narratives.
If Sinomine imports spod concentrate from its Zimbabwe plant, and if there was an oversupply, then why would Sinomine buy 100kt spod concentrate from LTR?
Go figure..!
I figured it out long time ago and always said the demand will be over the supply in 2024, and we will see it in the second half of 2024.
Anyway, it's good for us to ramp up the production. All of our production is sold out now. We have no more spod concentrate for sale.
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